6 Stock Market Strategies for Beginners -2021
Introduction
5 stock market active strategies for beginners or intermediate person those
who starts trading in 2021 and For those who have been in trading for 1 or 2 years.
In today's life, it is useless to depend only on jobs, you have to make many sources of
income, only then you can make a living.
Trading is not a game, remember if you know all its rules then invest in it otherwise
your money can also be lost if you are completely new in trading then you can learn
trading from our website - FINPRO
# strategy 1
and not in the stock of any specific company so what do i mean by that invest in a
business take example
" if i run a business i am an entrepreneur so i if my company would have been a
listed company i don't think i would be interested to nokia a daily movement for me
might not have mattered a lot but as the owner of the company i would have
surely thought that over the period of next five years next 10 years over the period
maybe next 20 years will i be able to generate wealth for the shareholders or not so
as a promoter
i never looked at an intraday movement but as a promoter i always look at
a long term perspective "
so if you would have invested in my company if you would have been the
shareholder of my company " what mr buffet says is that look at it as a long-
term investment look at it as if it's your own company don't look at
it from intraday gains the longer you stay invested in it "
so basically you should study an industry study a business try and understand
what the company's business model is see if you're 100 convinced with that
business model if you are convinced you will be in a position to stay invested
in that company for a longer period of time so just as an
example
" i've talked about two stocks so many number of times number one is domino's
two is jubilant food works i've been talking about that stock since the stock was at
1600 levels
today the stock even hit in the last few days it also hit a high of 4000 levels now you
can imagine if i had invested in the company immediately sold at 10 profit invested
again immediately sold at 20 profit doesn't make sense if i'm investing in that
company "
things you can do
- you can split your portfolio into short term
- midterm stocks
- long term stocks
short term stocks may buying selling buying selling is but if you are talking
about a long term strategy ideally you should not be even looking at
it from like at least for a period of three months now why period of three months i
always love to check the quarterly reports i do track the quarterly reports i'll
surely track if some news is coming about that company so that is very important
try to check the fundamentals of the company whenever i said try to check
the fundamentals its very important
- how do i do an economy analysis
- how do i do a industry analysis
- how do i do a company analysis
- what numbers do i have to really check
all these things i've already explained in one of my article which is titled as
" how to analyze an ipo " companies
# strategy 2
don't have too many stocks in your portfolio
i mean diversification is important that does reduce your risk but over diversification
is not going to solve the purpose i mean over diversification is done by those
people who truly don't understand what which company i should invest in how do i
invest where do i invest they don't understand so they believe today's investigating
they'll diversify so much that nothing truly will be able to be achieved okay so it's
very important that you have specific number of stocks in your portfolio don't go
overboard so what i learned from mr. warren buffet don't have too many stocks in
my portfolio did i take any learning from that yes
# strategy 3
Invest in what you understand
third and important investment lesson that i learned from buffet sir this is invest
in what you understand i have told that invest in those businesses which you
understand very simple example
"
if i'm talking about a company like dmart go to a demand store near you try to
see how many people are actually there in that in that shop in that shopping mall
i mean are people really buying in a lot or not in fact so if that much craze is there
why would as an investor not want to invest in demand because that would be a
basic understanding about the company
"
simple as footfall for any such business it is footfall number one number two are is
there is the location at a good place where people would be willing to go and buy
products from their shop right see this is like common sense investing don't invest
just because you see that there is a lot of crowd in the dmart store that is a starting
point so just as an example for me would i want to invest in a
business like nazara technologies or dmart if i'm given a choice i feel for me
demart is easier for me to understand rather than nazara
technologies because for nazara i think i'll have to do a lot i don't understand
it right now gaming related so i will have to do a lot of studies if i feel i start getting
some good amount of grip on such a company then i may think of investing it
again is always dangerous so he's putting out good points today so absolutely very
important so invest only in whatever you understand don't invest just because
someone else is investing right so ......
READ ALSO -
# strategy 4
Read
number four mr warren buffet says read read and extensively read so that you
can get new idea i think that is also very important point read because that is where
you are going to get very nice ideas so from where can you read now these day at that time
is it necessary that you have to read only books so depends you can read
rohit have you just drunk compliant today or maybe it's just that i'm noticing your
messages for the first time he is bang on target today so the biggest question
we can read annual reports management discussion and analysis so you can
read from both the source you know targeting one blog per week reading one blog
per week is like it's like nothing i mean everyone each and everyone will be should
be in a position to find some time for his or her own knowledge
your money can also be lost if you are completely new in trading then you can learn
trading from our website
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